Independent Bank (NASDAQ:INDB) Shares Gap Down on Disappointing Earnings

Independent Bank Corp. (NASDAQ:INDB)’s share price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $87.17, but opened at $80.70. Independent Bank shares last traded at $80.3540, with a volume of 86,960 shares.

The bank reported $1.70 earnings per share for the quarter, missing the consensus estimate of $1.79 by ($0.09). Independent Bank had a net margin of 19.14% and a return on equity of 8.66%. The firm had revenue of $253.32 million for the quarter, compared to analyst estimates of $257.50 million.

Independent Bank Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, July 9th. Shareholders of record on Monday, June 29th were paid a dividend of $0.64 per share. The ex-dividend date of this dividend was Monday, June 29th. This represents a $2.56 dividend on an annualized basis and a yield of 3.2%. Independent Bank’s payout ratio is 50.79%.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on INDB. Independent Research set a $95.00 price target on shares of Independent Bank in a research note on Friday, May 15th. Stephens initiated coverage on Independent Bank in a research report on Wednesday, April 15th. They issued an “overweight” rating and a $88.00 target price on the stock. Raymond James Financial reaffirmed a “strong-buy” rating and issued a $97.00 price target on shares of Independent Bank in a research note on Friday, April 17th. Keefe, Bruyette & Woods lowered their price target on Independent Bank from $96.00 to $94.00 and set an “outperform” rating for the company in a report on Monday, April 20th. Finally, Piper Sandler raised their price objective on Independent Bank from $84.00 to $90.00 and gave the stock a “neutral” rating in a research report on Friday, June 26th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $91.57.

Insider Activity at Independent Bank

In related news, Director Joseph C. Lerner sold 2,832 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $77.31, for a total transaction of $218,941.92. Following the completion of the transaction, the director owned 16,215 shares of the company’s stock, valued at approximately $1,253,581.65. This trade represents a 14.87% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.60% of the company’s stock.

Institutional Trading of Independent Bank

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Salomon & Ludwin LLC lifted its stake in Independent Bank by 167.2% during the fourth quarter. Salomon & Ludwin LLC now owns 358 shares of the bank’s stock worth $27,000 after purchasing an additional 224 shares in the last quarter. Ballast Advisors LLC purchased a new position in shares of Independent Bank during the first quarter worth $30,000. Advisory Services Network LLC acquired a new stake in shares of Independent Bank in the third quarter valued at $32,000. EverSource Wealth Advisors LLC grew its stake in shares of Independent Bank by 233.3% in the second quarter. EverSource Wealth Advisors LLC now owns 550 shares of the bank’s stock valued at $35,000 after buying an additional 385 shares in the last quarter. Finally, Danske Bank A S purchased a new stake in shares of Independent Bank in the 3rd quarter valued at $42,000. Hedge funds and other institutional investors own 83.40% of the company’s stock.

Independent Bank Price Performance

The company has a fifty day moving average of $81.03 and a 200-day moving average of $79.21. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.22. The stock has a market cap of $3.89 billion, a PE ratio of 15.95 and a beta of 0.77.

Independent Bank Company Profile

Independent Bank Group, Inc (NASDAQ:INDB) is a bank holding company headquartered in McKinney, Texas, that provides a range of financial services through its wholly owned subsidiary, Independent Bank. Tracing its roots to the late 19th century, the company has grown from a single community bank into a regional financial institution serving individuals, small businesses and commercial clients. Independent Bank Group became a bank holding company in 1983 and expanded its footprint through organic growth and strategic acquisitions.

The company’s primary business activities encompass retail and commercial banking, including deposit products, consumer and business lending and credit services.